Door opens for uranium explorers in Tasmania

TASMANIA has not rated on the radar screens of our
ever-excitable uranium explorer watchers. But that could be about
to change.

Perth's Minemakers has just punched a few holes into one of
several old uranium prospects in the north-east of the island
state, in what is the first exploration for the radioactive stuff
down there for longer than anyone can remember.

Before it could do that, Minemakers had to overcome opposition
from the Tasmanian Greens Party, which landed a "no exploration or
mining" bill in Parliament.

But it didn't get up, with both the Government and Opposition
teaming up to make sure Tassie did not miss out on the uranium
exploration boom and, who knows, maybe a uranium mine.

As a result, Tassie joined South Australia and the Northern
Territory as the only states where it is legally possible to mine
uranium - subject to a stringent approvals process, as you would
expect.

Minemakers, led by the seasoned geologist Andrew Drummond,
floated late last year with the old Rossarden tin and tungsten
deposits in Tassie's north-east as one of its key properties.

It was Drummond's uranium experience back in the 1970s and 1980s
with the likes of Uranerz that alerted him to Rossarden's uranium
potential, even if it is best known as Australia's largest historic
combined tin/tungsten field. Research by Drummond found that the
region is also home to four of the five known uranium properties in
Tassie.

One of them, the old Tasmania United prospect, was the subject
of limited mining more than 50 years ago and encountered
spectacular uranium ore grades of more than 13 per cent from
small-scale adits cut into the side of a hill.

Another of the prospects, Castle Carey, was recently the subject
of three holes drilled into the more accessible northern part of
its target zone.

Minemakers has confirmed that two of the holes returned
"significant radiometric anomalism" over thicknesses of up to 5 to
7 metres.

Assays are expected to be available early next month, with
Drummond doing the sensible thing and cautioning that while the
radiometric readings are highly encouraging, they do not provide a
reliable guide to the grade of uranium.

"Technically speaking, this is because we do not yet know
whether the radioactive decay series is in equilibrium or not,"
Drummond said, in what is our uranium exploration lesson of the
week. Minemakers plans to refine its exploration hunt in the
greenest of the Australian states once results of a
government-funded geological survey of the north-east region are
in.

Its shares closed at 22.5c on Friday. In the last year, the
stock has traded in a 13c-45c range.

Wridgways wrinkle

There are many ways to profit from a mining boom. And like the old
school lesson that it was the shopkeepers and pub-owners who
profited most in the 1850s gold rush, gaining exposure to the
latest boom can take many forms.

Removalist group Wridgways is a case in point. Mining groups are
moving people around the country like there is no tomorrow. They're
also bringing in overseas workers from places like Serbia and the
Philippines to make up the numbers.

The skill shortages mean that instead of the average worker
having to make the move themselves, mining companies are more than
happy to pay for a quality accredited removalist like Wridgways to
do the job.

Little wonder, then, that Wridgways - the only listed removalist
- cited strong growth in the mining states of WA and Queensland as
the key factor in its 35 per cent profit increase to $5.84 million
in the June year.

Further revenue and profit growth has been forecast for the new
financial year.

That's not bad for a stock that closed on Friday at $2.78 for a
market capitalisation of $89 million. There is also something of a
comfort blanket to the stock, given that if the mining boom were to
halt, everybody would have to be moved back home again.